Re: He should go free...
If it's for recreational purposes, the only FAA regs I've heard about are the same as the Model Aircraft guidelines:
•Fly below 400 feet and remain clear of surrounding obstacles
•Keep the aircraft within visual line of sight at all times
•Remain well clear of and do not interfere with manned aircraft operations
•Don't fly within 5 miles of an airport unless you contact the airport and control tower before flying
•Don't fly near people or stadiums
•Don't fly an aircraft that weighs more than 55 lbs
•Don't be careless or reckless with your unmanned aircraft – you could be fined for endangering people or other aircraft
Numbers 2, 5, and 7 are the only ones that sound like they might be relevant here. Course, if it wasn't actually recreational, then the FAA would like to have a word with them about their unlicensed aircraft.
http://www.faa.gov/uas/model_aircraft/
http://www.faa.gov/news/updates/?newsId=76240